Car Insurance Tips for Doctors Who Lease Luxury Vehicles

If you’re a doctor earning a good salary and you've built yourself a solid financial base, there’s nothing wrong with treating yourself to something nice once in a while. If you’re into cars, leasing a luxury vehicle could be your way of rewarding yourself.

While it’s important to enjoy your new car, it’s also important to pay attention to the less exciting details. Anyone who drives needs car insurance, but if you’re getting a more expensive vehicle, you’ll want to make sure you get the right coverage.

Car Insurance Basics

Car insurance is essential for anyone who drives. In fact, it’s legally required in every state except New Hampshire, which allows people to drive without insurance so long as they can prove they have the financial ability to cover any costs should they cause an accident.

Auto insurance covers a few basic things, including:

• Liability for damage and accidents you cause
• Collision coverage for damage to your car during an accident
• Comprehensive coverage for damage to your car caused by things other than accidents
• Uninsured motorist coverage that protects you from people with limited or no insurance

More information here:

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Insuring a Leased Luxury Car

Buying insurance for a car you lease is a bit different from getting coverage for a car you own. Your leasing company will have minimum insurance requirements that you must meet when buying coverage.

For example, if you own your car outright, you can probably carry less or even no comprehensive coverage. Your leasing company will likely require that you carry enough auto coverage to fully replace the vehicle should you get into an accident. For a luxury vehicle—which can cost $50,000, $75,000, or more—that can mean a hefty insurance premium.

Getting the Best Deal on Auto Insurance

When it comes to getting car insurance, the way to get the best deal is the same as when you buy anything else: shop around. Don’t just get a quote from one company and sign on the dotted line. Take the time to submit quote requests to multiple insurers. Each insurer has its own underwriting process, and it will quote you a different price.

Also, keep an eye out for discounts. Insurance companies often offer lower prices if you buy multiple policies, such as both home and auto insurance, from them. Many also have programs that will give you a discount if you let them monitor your driving habits for a period of time.

If you don’t want to put in the effort to shop around, you can also try reaching out to an independent insurance agent. These agents take your information and shop around on your behalf, and then they send you the quotes they’ve gathered. Typically, these agents are compensated by the insurance companies for the referral, so you can work with an agent without paying an upfront cost. This can be an easier way to get a good deal.

The White Coat Investor has also partnered with Farmers Insurance Choice, which operates as an insurance broker to help you find competitive quotes. Be sure to check with Farmers to see if you can get a good deal.

More information here:

How Much Car Insurance Do I Need?

Consider High Liability and Umbrella Insurance Coverage

Most states require that you carry a minimum amount of liability insurance for auto accidents. For example, Massachusetts requires that drivers have at least $20,000 in liability coverage for bodily injury to others per person, $40,000 per accident, and $5,000 in coverage for damage to someone’s property. If you buy the minimum amount of insurance, you might feel safe, but remember that the amount of insurance you buy doesn’t actually limit your liability. If you drive your new Ferrari through your neighbor’s living room window, you’ll probably cause a lot more than $5,000 in damage.

As a physician, people may assume, not unfairly, that you have a high income and likely have a lot of assets, and they may sue you for any additional damage you cause that your insurance doesn’t cover. It’s a good idea to consider purchasing more than the required liability coverage to protect yourself.

You could also think about buying umbrella insurance. Umbrella insurance policies cover you beyond the limits of your other insurance policies. If you crash into someone, causing $100,000 in damage, and you only have $50,000 in auto coverage, the umbrella policy kicks in and covers the remaining $50,000 in liability.

As a doctor, you can be open to liability when driving, practicing medicine, and more, so umbrella insurance is well worth having. You can get policies of $1 million, $2 million, or more for just a few hundred dollars a year—a relatively low price tag for protecting your financial security.

The Bottom Line

Auto insurance isn’t a particularly exciting topic, but it’s an important one for any physician. If you’re leasing a luxury car, it’s even more important to take the time to think about your insurance coverage and look for a good deal. Use these tips to find the best insurance available so you can enjoy your new car stress-free.

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The White Coat Investor may receive compensation from White Coat Insurance Services, LLC; licensed in all states including MA and DC; CA license #6009217; NY license #1758759 (exp. 6/2025); Registered address: 10610 S. Jordan Gateway, #200 South Jordan, UT 84095. This does not affect the cost or coverage of insurance.